January housing starts pick up the pace

The seasonally adjusted annual rate of housing starts in January increased nearly 10% to 1,326,000. It was the highest monthly total housing start figure since October of 2016. Compared to January a year ago, the current rate is up 7.3%.

Single-family starts also rose in January – up 3.7% to a rate of 866,000, compared to the revised December figure of 846,000.

Meanwhile, building permits produced mixed results. January’s total figure of 1,396,000 privately owned housing units authorized by building permits marked a 7.4% increase above December. Single-family building permits declined 1.7% month to month.

Home builders were pleased with the report, and the direction of residential construction in general. “The growth in production is in line with our reports of solid builder confidence in the housing market,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “A pro-business regulatory climate and increasing housing demand are boosting builders’ optimism, even as they continue to face supply-side hurdles such as rising construction material prices and access to lots and labor.”